Inside The SEC Pay Ratio Disclosure Proposal

Law360, New York (September 20, 2013, 9:05 AM EDT) -- On Sept. 18, 2013, the U.S. Securities and Exchange Commission proposed a rule that would require most public companies to disclose, annually, the ratio of the median of the annual total compensation of all of the company’s employees to the annual total compensation of the company’s principal executive officer.[1] This rule is mandated by Section 953(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was enacted in 2010.

In explaining her support for the rule, SEC Chairwoman Mary Jo White stated that the...
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